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Effect of certified health programs on the sale price of beef calves marketed through a livestock videotape auction service from 1995 through 2005

Michael E. King MS1, M. D. Salman BVMS, MPVM, PhD, DACVPM2, Thomas E. Wittum PhD3, Kenneth G. Odde DVM, PhD4, Jon T. Seeger DVM5, Dale M. Grotelueschen DVM, MS6, Glenn M. Rogers DVM, MS7, and Gregory A. Quakenbush DVM8
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  • 1 Animal Population Health Institute, College of Veterinary Medicine and Biomedical Sciences, Colorado State University, Fort Collins, CO 80523-1681.
  • | 2 Animal Population Health Institute, College of Veterinary Medicine and Biomedical Sciences, Colorado State University, Fort Collins, CO 80523-1681.
  • | 3 Department of Veterinary Preventive Medicine, College of Veterinary Medicine, The Ohio State University, Columbus, OH 43210.
  • | 4 Department of Animal and Range Sciences, College of Agriculture, Food Systems, and Natural Resources, North Dakota State University, Fargo, ND 58105.
  • | 5 Pfizer Animal Health, Pfizer Inc, 150 E 42nd St, New York, NY 10017.
  • | 6 Pfizer Animal Health, Pfizer Inc, 150 E 42nd St, New York, NY 10017.
  • | 7 Pfizer Animal Health, Pfizer Inc, 150 E 42nd St, New York, NY 10017.
  • | 8 Pfizer Animal Health, Pfizer Inc, 150 E 42nd St, New York, NY 10017.

Abstract

Objective—To quantify effects of certified health programs on the sale price of beef calves sold through a livestock videotape auction service.

Design—Longitudinal study.

Sample Population—26,502 lots representing 3,205,192 beef calves sold through a livestock videotape auction service between 1995 and 2005.

Procedures—Data describing each lot of beef calves that were marketed from 1995 through 2005 by a livestock videotape auction service were obtained from sale catalogues. For each year of the study, multiple regression analysis was used to quantify the effect of certified health programs on sale price.

Results—For each year of the study, beef calves that qualified for the 2 most intensive certified health programs sold for significantly higher prices, compared with prices for similar calves that were not in a certified health program, had not been vaccinated against respiratory tract viruses, and were not weaned before delivery. Price premiums for calves in the most intensive certified health program ranged from $2.47/100 lb (hundredweight [cwt]; 1 cwt equals 45.45 kg) in 1995 to $7.91/cwt in 2004. Price premiums paid for calves qualifying for the next most intensive certified health program ranged from $0.99/cwt in 1996 to $3.47/cwt in 2004. The percentage of the total number of lots in the 2 most intensive certified health programs increased over time.

Conclusions and Clinical Relevance—Findings from this study indicated that implementation of the 2 most intensive certified health programs consistently increased the price of beef calves, and these price premiums increased over time.

Contributor Notes

Supported by Pfizer Animal Health and Superior Livestock Auction.

Address correspondence to Dr. Salman.